Mention the energy sector to most people in the context of the current market environment and the typical response will be negative. Plummeting oil prices, CSG plays on the nose in eastern Australia and the resounding disappointment/failure of the burgeoning 'unconventional' energy sector within Australia - are all key factors. Amongst the gloom however there are a few exceptions - and this advanced exploration play, Transerv Energy (ASX: TSV), has grown significantly in stature as it steadily de-risks its flagship Warro energy project in WA. Among a host of attractions are an advanced and increasingly large resource base, proximity to nearby pipeline infrastructure and energy markets, and a motivated farm-in partner and end-user (Alcoa) that’s fully-funding all appraisal activity to the tune of $100 million. Adding to the credibility of this emerging production story is the fact that recent drilling successes have led to a more-than-doubling of the project’s overall resource base, with flow-testing now underway.
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